The Bank of Ghana (BoG) has rolled out a new methodology for calculating its Foreign Exchange (FX) Market Reference Rate (MRR), aligning with international best practices for enhanced accuracy and reliability.
This ensures that the rate accurately reflects current market conditions.
“The new methodology seeks to broaden the data coverage and reflect daily transactions executed between commercial banks and their clients,” a statement from the BoG said.
This change marks the first step in the Bank of Ghana’s long-term strategy to align its MRR methodology with the International Organization of Securities Commissions (IOSCO) Principles of Financial Benchmarks.
According to the statement, the reference rate, published daily on the Bank of Ghana’s website, will be based on data submitted by all banks.
“Each working day, all banks submit data on all spot US$/GH¢ transactions concluded on the reporting day before 3.30 pm. The data will cover all spot transactions on the interbank markets as well as transactions with their clients that have nominal values of US$10,000 or more, mutually reflective of prevailing market conditions”.
“The data submitted is used to compute the weighted median exchange rate. The weighted median exchange rate will be published on the Bank of Ghana website, as the closing rate for the day’s transactions,” the statement concluded.